Germany Debates Tax Cuts Amid Rapid Rise in Revenue

BERLIN—While most governments across Europe are looking for ways to cut their budget deficits, Germany faces a different dilemma: mounting tax revenue and what to do about it.

News this week that tax receipts had risen an annual 7.2% in March and 3.7% during the first quarter—faster than the 3.3% rise economists had expected for the full year—has sparked a debate about whether to lighten one of the world's heaviest household tax...